From The Hollywood Reporter: "Proponents of a new royalty for music that is broadcast over-the-air contend that a government study bolsters their argument that the radio industry can afford to pay.

"The artist-industry alliance known as the MusicFirst coalition points to an FCC study that examined radio market concentration and said it shows that broadcasters have been jacking up their rates.

"Annual growth of radio advertising rates since 1996 was about 10%, while the CPI has averaged a 3% increase per year over that span, FCC senior economist George Williams found in his study that examined the market through March…

"A high-profile hearing on the issue is scheduled [for today] in the Senate Judiciary Committee, in which an industry representative is Grammy winner Lyle Lovett.

"Legislation granting the music industry the royalty has yet to be introduced, but it is likely to come soon after the hearing. In the House, Rep. Howard Berman, D-Calif., chairman of that body’s copyright panel, is planning legislation, and this week, Sen. Judiciary Committee chairman Patrick Leahy, D-Vt., said he was interested in the legislation.

"Broadcasters argue that the promotional value gained by playing music on the radio more than offsets any royalty that performers and record companies would receive."

Read this entire Hollywood Reporter article online here.

Commenting is closed for this article.

Other stories
RAIN 09/05: DiMA's Potter disputes SoundEx's "lack of webcaster monetization" argument
RAIN 09/04: "Mission accomplished" for HD Radio Alliance
RAIN 09/03: Brian Parsons joins Triton Media
RAIN 9/2: Broadcasters should be on "as many wireless devices as possible," says Greater Media VP
RAIN 08/29: BBC PLANS MASSIVE MUSIC STREAMING SERVICE
RAIN 8/28: RIAA lobbying for radio royalties at political conventions
RAIN 8/27: Analyst warns investors away from "long-term loser" music industry
RAIN 8/26: In heavyweight online radio battle, CC readies "I Heart Music" to take on CBS
RAIN 8/25: Chrysler's in-car Internet launches
RAIN 8/22: Pandora's fight is radio's fight, says industry research expert